Utilities firm heads for two floats

United Utilities, which supplies power to Manchester United's Old Trafford ground, chalked up its own small victory on Thursday. Its ailing shares rose 16p to 743p as it revealed plans to float two businesses. Part of its telecoms arm could be hived off in 'one or two years'. Analysts value it at £300m, but UU hopes it could fetch £1bn in two years. It doubled sales to £50m last year.

UU's outsourcing arm, Vertex, which handles payrolls and call centres, is being fattened for a £600m to £700m partial flotation in three to five years. It aims to double sales to £400m by then.

Chief executive Derek Green, who unnerved investors by suddenly dropping £11bn merger talks with National Power in February, now has more modest plans. He wants to merge his electricity supply arm with a rival and pitch for customers nationally.

Meanwhile, Pennon, the Southwest water group, is spending £2m on extra pipes and tanks to supply visitors to Devon and Cornwall for the August 11 eclipse of the sun. Full-year pre- exceptional profits were flat at £121.6m. Dividends rose 11pc to 45.6p. Pennon fell 4p to 1014p.